Recent Changes in Car Insurance Policy Limits

Car insurance is meant to protect you if there is an accident. But do you know that California is changing the rules about how much insurance you must have? Starting in 2025—and again in 2035—the state will require higher minimum coverage. Our experienced California car accident attorneys will discuss this further below.

What Are Car Insurance Policy Limits?

When you buy car insurance, you often see numbers like “15/30/5.” These numbers tell you how much your insurance will pay if you cause an accident. For example, under the old rules:

• 15 means your insurance pays up to $15,000 for injuries to one person.
• 30 means your insurance pays up to $30,000 total if multiple people are hurt.
• 5 means your insurance pays up to $5,000 for damage to someone else’s property.

These three parts—injury to one person, injury to multiple people, and damage to property—are called policy limits. They set the most your insurance company will pay if you are at fault.

What Are the New Minimums in 2025?

Recent changes in California law (cited in Insurance Code Section 11622 and Vehicle Code Section 16451) say the minimum coverage will go up starting January 1, 2025. The new limits are:

• $30,000 for bodily injury or death of one person.
• $60,000 for bodily injury or death of everyone hurt in the accident.
• $15,000 for property damage.

This new rule doubles the old amounts for injuries and triples the amount for property damage. California wants to make sure that if you cause an accident, you have enough coverage to help pay for hospital bills, car repairs, and other costs.

What Happens in 2035?

On January 1, 2035, the minimum limits will go up again:

• $50,000 for bodily injury or death of one person.
• $100,000 for bodily injury or death of all persons.
• $25,000 for property damage.

These increases are meant to keep up with inflation and rising medical and car repair costs. The state hopes these higher limits will offer more protection for everyone on the road.

Why Are These Limits Changing?

Over time, things like medical care and car repairs have become more expensive. The old limits (15/30/5) were set many years ago. A hospital visit can easily cost more than $15,000, and even minor car damage can exceed $5,000. By raising the limits to 30/60/15 in 2025 and later to 50/100/25 in 2035, California wants to make sure your insurance can cover more of the damage if an accident happens.

What If You’re from Another State?

Sometimes, drivers from other states drive in California. If a driver’s license was suspended or revoked and they are a nonresident, they can show proof of insurance from their home state—if that insurance company is admitted to do business there. But it still must meet California’s requirements (from Vehicle Code Section 16056). This means out-of-state drivers might also need to increase their coverage if they plan to drive in California for a while.

How Will These Changes Affect You?

If you already have higher limits (for example, 100/300/50), you might not have to do anything. But if you currently carry the minimum (15/30/5), you could see an increase in your monthly or yearly insurance bill. The insurance company will raise your coverage to at least 30/60/15 when you renew your policy after January 1, 2025.

By 2035, if you are still carrying only the minimum, your insurance will again change to 50/100/25. This could cost a bit more, but it also means you get more protection.

Do You Really Need Higher Insurance?

Higher insurance limits can be a good idea. If you cause a serious accident, the bills might be huge. If you do not have enough coverage, you could be sued for the extra costs. Many people choose higher limits than the state minimum to protect their savings, home, or other assets.

Can You Shop Around?

Yes, you can always shop around for better rates. Different companies have different prices for the same coverage. You might find a policy that costs less even with the new higher limits. It is a good idea to compare quotes from a few insurers, especially as these changes roll out.

What if You Cannot Afford More Coverage?

California offers the “California Low-Cost Auto Insurance Program” to help drivers who struggle to pay for regular insurance. However, this program has its own limits and rules. You can check if you qualify by visiting the state’s official website or talking with a licensed agent. Keep in mind that you must still meet the new minimum limits if you want to drive legally unless you have a special low-cost policy that the state approves.

What If You Have an Accident in 2024?

If you have an accident before January 1, 2025, the old limits (15/30/5) still apply if that is what your policy says. The changes will only apply after the new rules kick in. That is why insurance companies will adjust policies on or after January 1, 2025. If you renew or buy a new policy in mid-2024, you will keep the old coverage until your next renewal date (after the new year).

Do the New Rules Apply to All Types of Vehicles?

Most private passenger vehicles, like cars, SUVs, and trucks, must follow these rules. Motorcycles also need liability coverage, though the details can differ. Commercial vehicles might follow slightly different guidelines, but they generally must meet or exceed these coverage amounts. If you are unsure, ask your insurance agent or check the California Department of Motor Vehicles website.

How Can a California Car Accident Lawyer Help?

Car insurance changes can feel confusing. What if you are not sure how they affect you—or if you have been in an accident and need legal help? A California car accident lawyer can explain your rights, how these higher policy limits apply, and what you can do if an accident happens. A lawyer may also help if an insurance company tries to pay you less than you deserve.

Talk to Our California Car Accident Lawyer Today!

As these new insurance rules come into play, it is smart to stay informed and prepared. At BANA LAW, PC, we proudly serve the entire state of California. If you have questions about accidents, insurance limits, or your rights on the road, we are here 24/7 to help. Hablamos Español. Contact us online or call 855-997-6599 for a FREE CONSULTATION. No fees unless we win. Let us guide you through these changes—and help keep you protected on the road!